Executed a smooth ramp-up to full production at Cerro San Pedro, including receipt of a prestigious safety award and achieving ISO 14001 certification of its environmental management system, all in its first full year of operation

Achieved a milestone at Peak Mines, producing its two millionth ounce of gold since the commissioning of the mine

Completed the feasibility study and the environmental impact study at El Morro, the joint venturedevelopment project with Xstrata. The project entered the permitting stage in November; and

Revised the New Afton project construction schedule, with start up now scheduled for the second half of 2012

(2) Due to the business combination between New Gold, Peak Gold and Metallica which closed on June 30, 2008, the consolidated financial statements of the company are presented on the basis that Peak Gold is the acquirer for accounting purposes. Therefore consolidated income and cash flow statements for January 1 through December 31, 2008 include results of Peak Gold for the period of January 1 to December 31, and results of Metallica and New Gold assets from July 1 to December 31. The consolidated balance sheet at December 31, 2008 reflects the balances of the merged entity. The operating highlights, including total cash costs, include results from the operations of the three entities.